Identify Which of the Following Statements Is True

question 21

Multiple Choice

Identify which of the following statements is true.

• A)The Hunter Partnership has a net long-term capital gain of $4,000 and a net short-term capital loss of $1,000 for the current tax year. The gain and loss will be netted and the partners will include their proportionate share of the $3,000 net long-term capital gain on their return.
• B)The Right Partnership sells a delivery truck and recognizes a gain of $2,000, which represents depreciation recaptured under Sec. 1245. The $2,000 gain will retain its identity as a separately stated item.
• C)For tax purposes, the partnership takes a carryover basis in the contributed property that references the contributing partner's basis.
• D)All of the above are false.

---

Definitions:

Psychophysiological Disorder

A physical illness or disorder that is caused or exacerbated by psychological factors such as stress, emotional state, or behavioral patterns.

Insanity Defense

A legal defense used by defendants claiming their mental illness at the time of the crime prevents them from being responsible for their actions.

Racial Bias

Prejudice or discrimination against individuals based on their race or ethnicity.

Sex Offender Laws

Legal statutes designed to regulate individuals convicted of sex crimes, including registration requirements and restrictions on living arrangements and employment.